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Model of Corporate Value Improvement Through Investment Opportunity in Manufacturing Company Sector

Imam Faozi*, Nunung Ghoniyah*

Abstract


This study aims to analyze the significance of the direct and indirect effect of
institutional ownership (INST), profitability (ROI), funding policy (DER), and
dividend policy (Tobin’s Q) through investment opportunity (MV/BVE). The
research data used 21 samples of manufacturing companies listed on the
Indonesia Stock Exchange (IDX) during the 2012-2016 period. Data analysis
used path analysis with the help of EViews 9 and Sobel test to know the effect of
investment opportunity as an intervening variable. The interpretation findings
of the first line analysis model show that Profitability directly affects positively
and significantly on Corporate Value. Whereas, based on second-line analysis
model, Funding Policy and Dividend Policy indirectly have significant effects
on Corporate Value through Investment Opportunity variable. Simultaneously,
all independent variables affect 97.45% of Investment Opportunities and
amounted to 97.97% of Corporate Value through Investment Opportunities.

Keywords:
Corporate value, institutional ownership, profitability, funding policy, dividend policy, investment opportunity.

*Department of Management, Faculty of Economics, Universitas Islam Sultan Agung (UNISSULA), Jl. Kaligawe Raya Street Km.4, Semarang, 50112,
PO Box 1054/SM, Indonesia.

 https://doi.org/10.21632/irjbs.12.2.185-196


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